India Poised to Gain as US Tariffs Hit Global Trade, China Faces Higher Duties
The new reciprocal tariffs imposed by the US are set to impact global trade, but India’s exporters may emerge stronger as China and other competitors face steeper levies. With Chinese tariffs reaching as high as 154%, India’s additional 27% duty places it in a more favorable position for expanding exports to the US.
New Opportunities for Indian Exporters
The tariff shift is expected to boost India’s competitiveness in sectors like:
- Electronics – India exported $10 billion worth of electronics to the US in FY 2023–24, with potential to grow to $80 billion annually, according to ICEA.
- Engineering Goods & Automotive – With China’s auto exports to the US at $17.99 billion versus India’s $2.1 billion, Indian automakers could expand their footprint, particularly in the budget EV segment.
- Gems, Jewellery & Textiles – Indian exports may gain a price advantage as rivals face higher tariffs.
Key Strategies to Maximize Gains
Experts suggest that to leverage this opportunity, India should:
✅ Negotiate a Bilateral Trade Agreement (BTA) with the US for long-term market access
✅ Strengthen the PLI scheme for auto components and electronics to attract more investments
✅ Collaborate with Asian FTA partners to restructure supply chains and expand trade routes
The US-India trade relationship, already crossing $100 billion, could see exponential growth if India acts strategically to fill the gaps left by China and Vietnam. Stay tuned for further developments in global trade.
